crypto exchange OKX has had a record amount of its own over the past two months crypto OKB burnt, or permanently destroyed. Between March 1 and May 31, approximately 5.5 million OKB tokens worth an astounding $258 million were withdrawn from circulation.
Record amount of crypto burned
The exchange burnt tokens in two-month rounds using their Buy-Back & Burn program. According to OKXs report a total of 64 million OKB has been burned since 2019. Of the starting amount of 300 million OKB, 236 million are now left. The amount of OKB burned in the past two months is not a record number, but the amount it equates to is. Between June and September 2019, 6.1 million OKB tokens were burned, but that amount was then equivalent to a value of $14.6 million.
The tokens have been moved to a wallet that no one can access. The tokens are therefore permanently out of circulation, in other words burnt. Coin owners often do this to prevent the inflation of a cryptocurrency. Burning tokens is often accompanied by an increase in the price. That is not the case at the moment, but the market is also being plagued by other crypto news.
Exchange tokens in trouble
Exchange tokens have been struggling lately after exchanges Binance and Coinbase are sued by the Securities and Exchange Commission (SEC). Binance’s exchange token, BNB, dropped after the indictment from $286 to $235 in a few days. OKB is also affected, dropping from $46 to $41 this week.
OKX came earlier in the news when it revealed its reserves at the end of November 2022 after the ftx drama. The exchange announced that it has $7.2 billion in reserves. More than enough to be able to provide for all customers. At the time, the company claimed to have the largest amount of clean reserves of any crypto exchange. This means that the reserves consist purely of currency and cryptocurrency that do not belong to the exchange itself. OKB therefore does not fall under their reserves.